Israel going to launch six Bitcoin based mutual funds next week

Bitcoin based mutual funds:

This approval by the ISA comes almost a year after the U.S. Securities and Exchange Commission (SEC) approved spot Bitcoin exchange-traded funds (ETFs) in the United States.

Next week, Israel will witness the launch of six mutual funds that track the price of Bitcoin (BTC), following the approval from the Israel Securities Authority (ISA). This significant move marks a notable development in the country's financial market, reflecting the growing interest in cryptocurrency investments. According to Calcalist, all six funds will start their operations on the same day, December 31, a condition set by the regulator. Final approval for these funds was granted last week, paving the way for their debut.

The mutual funds will be offered by Migdal Capital Markets, More, Ayalon, Phoenix Investment, Meitav, and IBI. Each of these funds will charge management fees ranging from as high as 1.5% to as low as 0.25%. Among these, one fund will be actively managed, with the goal of outperforming Bitcoin's market performance. Initially, these funds will transact only once a day, but future products might offer continuous trading, as reported by Globes.

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This approval by the ISA comes almost a year after the U.S. Securities and Exchange Commission (SEC) approved spot Bitcoin exchange-traded funds (ETFs) in the United States. This approval in the U.S. has significantly influenced global markets, as Bitcoin's value has more than doubled since then, nearing a record high. The U.S. funds have attracted a substantial amount of investor interest, gathering a net $35.6 billion.

The introduction of these Bitcoin-tracking mutual funds in Israel represents a broader acceptance and integration of cryptocurrencies into mainstream financial products. It provides Israeli investors with new opportunities to participate in the cryptocurrency market through regulated financial instruments. This move could also set a precedent for other countries to follow, potentially leading to a more widespread adoption of Bitcoin and other digital assets.

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Overall, the launch of these mutual funds is a significant milestone for Israel's financial market and its investors. As these funds begin operations, it will be interesting to observe their performance and impact on the local and global cryptocurrency landscape. This development highlights the increasing recognition of Bitcoin as a legitimate asset class and the evolving landscape of investment opportunities worldwide.